Tesla Inc(NASDAQ:TSLA): Asked about limitations of EV in transportation… Musk: Absolutely confident that electric vehicles will occupy every segment of the transportation industry; everything except for rockets (ironic because of SpaceX)

Have seen evidence that people believe the Model 3 is the next version of the Model S. To clear up confusion: Model 3 is smaller more affordable Model S with fewer features. Model S/3 will have same level of technology… current Model S is fourth version (RWD, then AWD, HWD1 autopilot and now HWD2 autopilot with new grill). Model 3 was supposed to be model E but Ford (F) sued.

Finished vehicle inventory was up slightly Q/Q due to increased Model X test drive EVs and service loaner. Loaners are always top of the line (P100, ludicrous model).

Model 3 will be roughly equivalent to or slightly better than the best auto production line in the world.

Model Y will be even better, on a different platform than the Model 3, targeting 2020 release where 1 million units will be achievable.

Wont need to partner for the semi-truck

Adam Jonas: Apple (AAPL) has enough cash to buy Tesla 3x over… Does Apple have anything that could help Tesla in achieving autonomous transportation — asking about potential partnership? Musk says they make good products but doesn’t really answer. AJ: Are they a competitor? I don’t know what they are going to do on the car front.

Asked about order growth for Q2, which co did not disclose this quarter; Musk doesn’t divulge but does say confident in 100K production target for S/X and demand at that level.

Seems the Model S/3 confusion may have impacted orders near term but that is speculation and co sees demand for 100K units this year.

Demand at Model 3 price point will be 30-70x higher than Model S price point.

Tesla has ~1/3 of the luxury market share in the US.

Musk reiterates he will be involved at Tesla as long as possible; not necessarily CEO forever, though. Product design and technology is his forte.

TenCent (TCEHY) investment is passive.

Plans to add 100 retail, delivery and service locations this year (+30%)

Tesla developed a MBLY (INTC) chip in-house in 6 months after the co’s ‘breakup’.

Tesla can grow at a moderate pace with no dilution, fast with some and very fast with more dilution.

Most people who have put a deposit on the Model 3 should be able to realize the full tax credit. Net Model 3 reservations continue to climb despite anti-selling, no test driving, advertising.

GM can recoup losses on the Volt by selling tax credits but that is only effective at 20-30K units per year; Musk says Tesla’s competitive advantage improves with scale as incentives go way. Tesla did not actually receive $1.3 bln in a tax credit from Nevada, they have to earn them with sales/output over time.

When asked about a prior comment about achieving a ~$700 bln market cap, Musk says he sees a pretty clear path but he ‘could be delusional’. Tesla will need to get incredibly good at building the ‘machine that builds the machine’. It will require a ton of complex software. It will be hard for manufactures to copy.